REBusinessOnline

Battle for Market Share: Leading Hotel Companies Expand Via Acquisitions, New Brands

ATLANTA — The world’s largest hotel company, Wyndham Hotel Group, made a splash in January when parent company Wyndham Worldwide Corp. purchased La Quinta’s franchise and management business for nearly $2 billion. Speaking at the 30th annual Hunter Hotel Conference in Atlanta Wednesday, Geoff Ballotti, president and CEO of Wyndham Hotel Group, spoke about how the acquisition has helped expand the company’s platform. “It is our 21st brand. We’re the company that operates more …

RENTCafé: February Multifamily Rents Increasing Fastest in Small Markets

SANTA BARBARA, CALIF. — The average rent for a multifamily unit in the United States was $1,364 this February, a 2.7 percent year-over-year increase, according to Santa Barbara-based RENTCafé’s latest monthly Apartment Market Report. The cost of renting one-, two- and three-bedroom units increased by 3.2 percent year over year, and by 0.2 percent month over month. This number outpaced rents for studio apartments, which only grew by 2 percent year-over-year and remained stagnant for the …

A Company Has a Towering Offer: Under What Conditions Should You Say Yes?

With the number of U.S. smart phone users estimated to climb to 271 million by 2022, telecom providers are rushing to add capacity, and tower companies are working hard to accommodate the telecom providers’ need for infrastructure. Tower companies are dangling large sums of money in front of property owners whose locations can hold such infrastructure, thereby enabling telecom providers to relieve network congestion and strengthen coverage. Tower companies are always looking for new and …

NRF Survey: St. Patrick’s Day Spending to Hit Record $5.9B, Food and Beverage Most Popular Items

WASHINGTON, D.C. — More than 149 million U.S. adults are expected to celebrate St. Patrick’s Day on Saturday, spending a record $5.9 billion on items related to the holiday, according to a survey by the National Retail Federation (NRF) and Proper Insights & Analytics. The annual survey, conduced Feb. 2 to 13, asked 7,657 consumers ages 18 and up about their St. Patrick’s Day plans. The 2018 figure is the highest level in the survey’s 14-year history, up from last year’s …

Multifamily Investors Look Beyond the Core, Says Capital One Survey

After years of historic increases, 2017 was the year that the central business districts (CBDs) of the nation’s major cities lost some of their luster. Multifamily rent growth slowed in cities like San Francisco and San Jose, Calif. Landlords in some submarkets, such as San Francisco’s South of Market (SoMa) district, actually lowered rents and offered concessions to new tenants during the early part of the year. These West Coast cities were not alone. Rents in New York, Chicago and …

GSU’s Rajeev Dhawan: Decisive Year Ahead for Federal Reserve

ATLANTA — Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University’s (GSU) J. Mack Robinson College of Business, anticipates that the Federal Reserve will raise the federal funds rate several times this year. “Three is a safe bet based on my projections for growth,” writes Dhawan in his quarterly Forecast of the Nation report released last week. The veteran economist expects Jay Powell, who succeeded Janet Yellen in January as the new Fed chair, to …

PGIM: Liquid Market Means ‘It’s a Good Time to Be a Borrower’

SAN DIEGO — In 2017, PGIM Real Estate Finance originated $14.8 billion in financing, led by production in multifamily and industrial lending. The company also announced that it has as much as $15 billion available for financing in 2018 and will target growth in international markets and agency business in the Western United States. REBusinessOnline spoke with Paige Hood, CIO and senior portfolio manager with PGIM Real Estate Finance, at the Mortgage Bankers Association CREF Multifamily …

2018: Year of Transition for CMBS Industry

As a result of new Dodd-Frank risk retention regulations that went into effect in December 2016, last year was widely considered to be a pivotal period for the CMBS industry.  Formulated to hold banks more accountable for their own investment decisions and place a greater emphasis on collateral quality, the regulatory provision imposed higher capital charges on sponsors by requiring them to retain a 5 percent interest in an asset-backed securitization. The mandate fueled concerns that CMBS …

Restrictive Bank Regulations Open Door for Alternative Lenders

Upon the introduction in 2015 of new banking regulations related to holding extra reserves for short-term or riskier commercial real estate loans, banks reined in lending. While the pullback affected property investors across the board, developers felt it most. Typical loan-to-cost ratios for construction financing dropped 20 percentage points to 55 percent, interest rates ballooned by some 150 basis points to around 350 basis points over 30-day LIBOR (London Interbank Offered Rate), and the …

Lancaster Pollard Survey: 87 Percent of Seniors Housing Professionals Rate Industry as Highly Competitive

COLUMBUS, OHIO — Increasing competition is becoming a larger and larger issue within seniors housing, as 87 percent of owners, operators developers and investors rate their local environment as either competitive or extremely competitive. That’s according to the 2018 Seniors Housing and Care Survey conducted by Lancaster Pollard. In December 2017, the Columbus-based real estate services firm sent an online survey to approximately 4,000 leaders at seniors housing and care …